PokerStars Snags New Jersey I-Gaming LicenseCompany Doesn't Have Launch Date Yet |
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After more than four years without offerings in the American poker market, PokerStars, the world’s top poker site in terms of number of users, has finally received regulatory approval to take action in the country once again.
But just in New Jersey, and for those physically located within New Jersey, for now.
The New Jersey Division of Gaming Enforcement on Wednesday issued a license to PokerStars’ parent company Amaya Gaming to run PokerStars through a partnership with land-based operator Resorts AC. Under state law, an online gaming company must have a brick-and-mortar partner. Amaya already had approval for other business-to-business solutions in the state. Amaya called the licensing of PokerStars an “unprecedented review.”
“We are very pleased to add New Jersey to the long list of regulated markets that have found PokerStars and Full Tilt suitable to offer real-money online gaming,” David Baazov, chairman and CEO of Amaya, said in a statement. “I want to thank the DGE for their thorough and fair review of our business. We look forward to bringing our popular brands, innovative technology, marketing prowess and world-class security and game integrity to the growing New Jersey online gaming market. We anticipate providing additional details of our launch plans in the near future.”
Amaya Gaming also owns Full Tilt, which PokerStars acquired in a settlement with the United States in 2012. PokerStars didn’t admit to any wrongdoing in the case. The major offshore poker sites catering to Americans were accused of financial misconduct by the federal government in an event known as Black Friday.
Amaya bought both companies in 2014 for $4.9 billion, a move which was seen as helping the sites re-enter the American market. Nevada and Delaware are the two other states with real-money online gaming, but California, New York and Pennsylvania are strongly considering it. PokerStars has been actively lobbying in California.
Wynn Resorts was once going to partner with PokerStars for a Nevada online gambling site, but the deal was canceled after Black Friday in April 2011.
New Jersey made online poker legal in February 2013, as PokerStars was making progress to buy a casino in Atlantic City. That deal eventually fell through and later PokerStars had its licensing put on hold. “The DGE’s review of PokerStars was extremely thorough and exhaustive, including a detailed review of Amaya’s operations and technology, sworn interviews with more than 70 individuals and visits to approximately a half dozen international jurisdictions,” PokerStars said.
Resorts began Internet operations in February via a partnership with Sportech NYX Gaming and also is the brick-and-mortar partner for a Mohegan Sun-branded site.
Total New Jersey online gambling revenue was roughly $12.2 million in August, up 15.8 percent year-over-year. Year-to-date online gaming win was $96,723,723 through August, up 15.6 percent from the $83,668,485 during the same period in 2014.
Online poker revenues have been stagnant this year, however. PokerStars is expected to provide a big shot in the arm to the Garden State’s still-young online poker market.
America’s real-money online gaming market could hit $2.7 billion by 2020 if more states legalize and regulate the games, according to research from Morgan Stanley.
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